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Like the PEG=1 rule it's ad hoc and doesn't account for risk and book value, two key components of valuation.

My first thought when reading the article was "What about Book Value?" I have been involved with stocks that had a lower share price than the current book value. (One of which as since climbed back over the book value after I took my loss...:^(

How would we work Book Value into choosing stocks in this market low?

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